Las Vegas High-Rise Condo / Luxury Condominium Market

 

The condominium market in Las Vegas has been effectively split into two distinctive parts or factions.  The high-end, luxury condominium market and the low-end standard condominium market.  Most of the Las Vegas Strip or near-Strip high-rise buildings have condo offerings that start above $ 450,000 and many start above $ 600,000.  The price of properties in this price range or category are beyond the purchasing power of most Las Vegas residents.  

 

The average price paid, as reported by the Greater Las Vegas Association of Realtors (GLVAR), for a Las Vegas condominium in June of 2008 was about $ 222,000.  This price is in keeping with the median family income of Clark County in 2007 that was about $ 53,000.  Thus, all but an elite few families living in the Las Vegas area can afford a luxury high-rise condominium.

 

Thus, the high-end luxury condominium market is not tied to Clark County employment figures, and the demand of Clark County residents like most of the other real estate market segments are, it derives its demand from outside the area.  The sales team at Trump Tower or Sky Las Vegas would likely confirm to you the fact that local residents are important, but they are not the driving force in the market for their product.

 

While real estate brokers are often fast to note that the high-end / luxury real property markets are unaffected by economic downturns, because the rich simply make their decisions without regard for employment and other economic factors, however that statement simply is not true in this recession of 2008.

 

Watch out for those Homeowner Association (HOA) fees, they start in the $ 250 per month range and they go up real fast.  As an example Newport Lofts has an HOA fee around $ 435 per month, and I have heard of HOA fees in the $ 3,000 per month range for some of the more exclusive Strip units.    

 

The luxury condominium market in Las Vegas, as in many other parts of the country, is suffering from the broad-based credit melt-down.  We expect that the market for luxury high-rise condos will rebound, but not without time and pain.  Real estate appraisers are charged with the difficult task of analyzing supply and demand within the high-rise condominium market.  Contact us via our feedback form or by e-mail at grigdon@cox.net if you have questions about the condominium market in Las Vegas.

 


                       



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Commercial Real Estate Appraisals in the Las Vegas & Henderson, Nevada Area.